Netflix Inc (NFLX) 10-Q Quarterly Report July 2021

In Q2, revenue increased 19% year over year to $7.3 billion, while operating income rose 36% year over year to $1.8 billion. We finished the quarter with over 209m paid memberships, slightly ahead of our forecast. COVID has created some lumpiness in our membership growth (higher growth in 2020, slower growth this year), which is working its way through. We continue to focus on improving our service for our members and bringing them the best stories from around the world. Our summary results and forecast for Q3 are below.


(in millions except per share data)	Q2'20			Q3'20			Q4'20			Q1'21			Q2'21			Q3'21 Forecast
Revenue	$	6,148		$	6,436		$	6,644		$	7,163		$	7,342		$	7,477
Y/Y % Growth	24.9		%	22.7		%	21.5		%	24.2		%	19.4		%	16.2		%
Operating Income	$	1,358		$	1,315		$	954		$	1,960		$	1,848		$	1,550
Operating Margin	22.1		%	20.4		%	14.4		%	27.4		%	25.2		%	20.7		%
Net Income	$	720		$	790		$	542		$	1,707		$	1,353		$	1,158
Diluted EPS	$	1.59		$	1.74		$	1.19		$	3.75		$	2.97		$	2.55

Global Streaming Paid Memberships	192.95			195.15			203.66			207.64			209.18			212.68
Y/Y % Growth	27.3		%	23.3		%	21.9		%	13.6		%	8.4		%	9.0		%
Global Streaming Paid Net Additions	10.09			2.20			8.51			3.98			1.54			3.50

Net cash provided by (used in) operating activities	$	1,041		$	1,264		$	(138)		$	777		$	(64)
Free Cash Flow*	$	899		$	1,145		$	(284)		$	692		$	(175)
Shares (FD)	453.9			455.1			455.3			455.6			455.1
Note: Figures are consolidated, including DVD.
* Free cash flow represents Net Cash provided by (used in) operating activities less purchases of property and equipment and change in other assets.


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The following information was filed by Netflix Inc (NFLX) on Tuesday, July 20, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Netflix Inc's 10-Q Quarterly Report:

Revenue - Geography Highlight
In the six months ended June 30, 2021, the foreign exchange gains were primarily driven by the non-cash gain of $190 million from the remeasurement of our 5,170 million Senior Notes, coupled with the remeasurement of cash and content liability positions in currencies other than the functional currencies.

Financial - Expense Highlight
24 Table of Contents Technology and Development Technology and development expenses consist of payroll and related expenses for all technology personnel, as well as other costs incurred in making improvements to our service offerings, including testing, maintaining and modifying our user interface, our recommendations, merchandising and streaming delivery technology and infrastructure.
Revenue - Product Highlight
The increase in average monthly revenue per paying membership resulted from our price changes and favorable fluctuations in foreign exchange rates.
Financial - Expense Highlight
Other operations costs include customer service and payment processing fees, including those we pay to our integrated payment partners, as well as other costs incurred in making our content available to members.
Financial - Cash Flow Highlight
Free cash flow was $1,528 million lower than net income for the three months ended June 30, 2021 primarily due to $1,602 million of cash payments for content assets over amortization expense and $91 million in other non-favorable working capital differences, partially offset by $102 million of non-cash stock-based compensation expense and $63 million of non-cash remeasurement loss on our euro-denominated debt.
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19 Table of Contents Our...Read more
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Free cash flow was $369...Read more
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Marketing expenses also include payroll...Read more
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Results of Operations The following...Read more
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Provision for Income Taxes Three...Read more
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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Netflix Inc provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.3: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: NFLX
CIK: 1065280
Form Type: 10-Q Quarterly Report
Accession Number: 0001065280-21-000250
Submitted to the SEC: Thu Jul 22 2021 4:02:47 PM EST
Accepted by the SEC: Thu Jul 22 2021
Period: Wednesday, June 30, 2021
Industry: Video Tape Rental